CONFIDENTIAL:-

Evidence of increased Thai cooperation is encouraging. The Burmese Ambassador to Thailand was recently asked by the Thais for the names of Burmese insurgents residing! in Thailand, and there have been reports the Burma. Army was permitted to enter Thai territory in hot,"val pursuit byutual agreement with the Thaï authorities, but iliyozatule, La un teen where the border do 4ill-defined, that the Butrese crossed the border,

unwittingly. As far as I am aware no agreement betweed Burua and Thailand his been recorded in the Thai press and certainly not in the Burmese papers.

There is an' increasing rug midletion problem in Rangoon, which, if the pattern in other countries with a similar problem is followed, will ensnare the more affluent children of color officers and Government officiels. This trev ds Chusing concern and if not suppressed is bound to lead to an increase in crine

in urban areas.

Conclusion:

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1

DOX I

The main success of this operation hun bose the diar pelle It has chused to Lasurgent drug tamfragen. There Pro Jadications the Bumeve and the Thai - que copruting to coate extent in efforts to rulves the snuggling of opium, find it hard to believe the Chris cooperation will amount to very much, because they have enough problems dealing withi insurgency of their E and T. border willout gratuitously stirring up the tribesliving nend thee 17 and With Burn.

borders

Copy to:

Yours:

Tony

FCO, SEAD

HQ`5815,"long Kong Defence Allahé, Banghipk

CG INIDENTIAL

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